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Fibonacci Confluence

Fibonacci Retracements: Finding Key Levels the Easy WayIn this video, I’ll walk you through how I use Fibonacci retracements to spot those key pullback levels where price might bounce and keep trending. It all comes from an old-school math genius named Leonardo of Pisa (aka Fibonacci), but don’t worry – no crazy math here, just practical trading tools. The main levels I focus on? 38.2%, 50%, and 61.8%. IF price holds at one of these levels, THEN it’s a good sign the trend could keep going. IF NOT, THEN I stay ready for a deeper pullback. Using this tool helps me stay ahead and manage trades with more confidence. Your Turn: Here’s a fun exercise – draw Fibonacci retracements on different timeframes, from the weekly all the way down to the 5-minute chart. Check how the levels overlap or line up. Those overlaps, or confluences, are where some of the best trades happen! If this clicks with you, hit like, drop a comment, or follow – I’ll keep sharing more tips to help you crush the markets! Mindbloome Trading Trade What You See
Education
by Mindbloome-Trading
2
From Leonardo to Trading: The Evolution of Fibonacci LevelsIn the labyrinthine landscape of financial markets, where volatility reigns supreme and uncertainty lurks around every corner, traders seek reliable navigational tools to steer through the tumultuous waters of price movements. Among the myriad techniques at their disposal, Fibonacci analysis emerges as a stalwart companion, offering a nuanced understanding of market dynamics rooted in mathematical precision. In this comprehensive exploration, we delve deep into the multifaceted realm of Fibonacci levels, unraveling their historical significance, evolutionary trajectory, practical applications, and the diverse perspectives that shape their interpretation. Tracing the Roots: To appreciate the profound impact of Fibonacci analysis on modern trading methodologies, a journey back in time to the 13th century is warranted. It was during this epoch that Leonardo of Pisa, known colloquially as Fibonacci, unveiled a numerical sequence that would transcend mathematical realms and find profound resonance in the domain of financial markets. Beginning with 0 and 1, each subsequent number in the sequence is the sum of the two preceding ones, laying the groundwork for a sophisticated understanding of market movements rooted in the natural order of mathematics. Evolution in Financial Analysis: While Fibonacci himself might not have envisaged the application of his sequence in financial markets, the 20th century witnessed a paradigm shift as visionaries such as Ralph Elliott and Robert Prechter pioneered its integration into trading methodologies. Elliott's Wave Theory, with its emphasis on repeating patterns and sequences, forged an intriguing connection with Fibonacci numbers, laying the groundwork for a symbiotic relationship between mathematical principles and market analysis. This union catalyzed a renaissance in technical analysis, ushering in an era where Fibonacci levels became indispensable tools in the arsenal of traders worldwide. Unveiling Fibonacci Retracement Levels: At the heart of Fibonacci analysis lies the concept of retracement levels, a cornerstone of technical analysis that echoes the natural order observed in the Fibonacci sequence. These levels, including 23.6%, 38.2%, 50%, and 61.8%, serve as pivotal markers in identifying potential zones of price reversal, offering traders valuable insights into market sentiment and trend dynamics. By applying the Fibonacci retracement tool to significant highs and lows, traders gain a nuanced understanding of market psychology, discerning the underlying rhythm of price movements amidst the chaos of market fluctuations. Venturing into Fibonacci Extension Levels: Beyond retracement levels, Fibonacci extension levels offer a panoramic vista into the future trajectory of price movements, illuminating the path for traders seeking to navigate the complexities of trending markets. With extensions such as 161.8%, 261.8%, and 423.6%, traders can delineate potential targets for price continuation after a correction, harnessing the mathematical harmony inherent in the Golden Ratio to set profit targets and manage risk effectively. These extension levels, rooted in the timeless principles of Fibonacci analysis, serve as guiding beacons for traders navigating the ever-shifting tides of financial markets. Practical Applications and Precautions: While Fibonacci levels furnish traders with a potent framework for analysis, it is essential to exercise caution and supplement Fibonacci analysis with corroborating indicators and risk management strategies. By integrating tools such as Moving Averages, Relative Strength Index, and candlestick patterns, traders can enhance the robustness of their trading decisions, mitigating the inherent uncertainties of financial markets and maximizing the efficacy of Fibonacci analysis. A Tapestry of Perspectives: As we reflect on the journey of Fibonacci levels through the annals of financial history, we encounter a tapestry of perspectives that weave together to form a rich tapestry of knowledge and insight. From Larry Pesavento's exploration of harmonic price patterns to Philip Carret's pioneering work in long-term investing, the legacy of Fibonacci continues to inspire and guide traders in their quest for market mastery. These diverse perspectives underscore the enduring relevance of Fibonacci analysis in an ever-changing landscape, reaffirming its status as a timeless ally in the pursuit of profit and prosperity. Conclusion: In conclusion, the comprehensive exploration of Fibonacci analysis reveals its enduring significance as a cornerstone of technical analysis in financial markets. From its humble origins in the mathematical treatises of Leonardo of Pisa to its integration into modern trading methodologies, Fibonacci analysis embodies the timeless principles of mathematical harmony and market psychology. As traders navigate the labyrinthine paths of price movements, they find solace in the elegant simplicity of Fibonacci analysis, a steadfast companion in their quest for success amidst the ever-shifting currents of financial markets. Thank you for reading! I hope this article proves to be interesting for all of you!
Education
by FOREXN1
4
How to Find a High Probability Trade in an Uptrend Hey Traders, We'll show you how you can find an easy trade with a high risk-to-reward ratio using some basic concepts. - Step One: Spot an uptrend where you have higher highs and higher lows. - Step two: Spot the last break of structure. - Step three: Use the Fibonacci tool and connect it from the recent lows to the recent highs. - Step Four: Watch prices coming back to the broken structure that lines up with any Fibonacci level. ( Focus on the 50% - 61.8% - 78.6% Levels ) - Step Five: Wait for a clear bullish candle and then enter with stoploss structure - Step Six: Take partial profits at the recent highs and the Fibonacci extensions ( - 0.27 & -0.618 )
Education
by Tradenessfx
3
📈 Fibonacci Power in Uptrends📍 What Are Fibonacci Retracement Levels? Fibonacci retracement levels—stemming from the Fibonacci sequence—are horizontal lines that indicate where support and resistance are likely to occur. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points. 📈 To effectively trade Fibonacci retracements during an uptrend and strategically enter the market during pullbacks, follow these steps: 🔷Identify the uptrend: Determine the presence of a clear upward price movement. 🔷Apply Fibonacci tool: Utilize the Fibonacci retracement tool to identify potential retracement levels within the uptrend. 🔷Focus on pullbacks: Wait for the price to experience a pullback or retracement within the uptrend. 🔷Assess Fibonacci levels: Analyze the price's interaction with key Fibonacci levels, such as the 61.8% or 65% zone, to identify potential support or resistance areas. 🔷Higher highs confirmation: Look for the formation of higher highs after the price touches a Fibonacci level, indicating a continuation of the uptrend. 🔷Entry opportunity: Consider entering the market after a pullback when the price resumes its upward movement, using appropriate risk management strategies. By combining the power of Fibonacci retracements, recognizing pullbacks in uptrends, and waiting for higher highs, traders can position themselves to capitalize on the potential profit opportunities offered by the market. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
📊 Fibonacci Trading: Extension LevelsThe Fibonacci retracement tool plots percentage retracement lines based upon the mathematical relationship within the Fibonacci sequence. These retracement levels provide support and resistance levels that can be used to target price objectives. Fibonacci Retracements are displayed by first drawing a trend line between two extreme points. A series of six horizontal lines are drawn intersecting the trend line at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50%, 61.8%, and 100%. 📍 How this indicator works The percentage retracements identify possible support or resistance areas, 23.6%, 38.2%, 50%, 61.8%, 100%. Applying these percentages to the difference between the high and low price for the period selected creates a set of price objectives. Depending on the direction of the market, up or down, prices will often retrace a significant portion of the previous trend before resuming the move in the original direction. These countertrend moves tend to fall into certain parameters, which are often the Fibonacci Retracement levels. 📍 Calculation Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, and so on. 📍 What Are Fibonacci Extensions? Fibonacci extensions are a tool that traders can use to establish profit targets or estimate how far a price may travel after a pullback is finished. Extension levels are also possible areas where the price may reverse. Drawn as connections to points on a chart, these levels are based on Fibonacci ratios (as percentages). Common Fibonacci extension levels are 61.8%, 100%, 161.8%, 200%, and 261.8%. 🔹 Because Fibonacci ratios are common in everyday life, some traders believe these common ratios may also have significance in the financial markets. 🔹 Fibonacci extensions don't have a formula. Rather, they are drawn at three points on a chart, marking price levels of possible importance. 🔹 The Fibonacci extensions show how far the next price wave could move following a pullback. 🔹 Based on Fibonacci ratios, common Fibonacci extension levels are 61.8%, 100%, 161.8%, 200%, and 261.8%. 🔹 Extension levels signal possible areas of importance, but should not be relied on exclusively. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
Fibonacci Retracement Levels In Forex TradingBoth novice and seasoned traders use Fibonacci levels as one of the most common and universal strategies when trading forex and other markets. It is a well-known fact that market prices incline toward levels where the bulk of market orders are gathered. Such levels can be found and predicted using a variety of ways. Systems for trading are built on a variety of levels. Since traders first realized that the price fluctuations of some assets frequently followed the Fibonacci number sequence, the Fibonacci levels have been employed in trading. The standard Tradingview trading platform, which is currently the most well-known and in demand, includes the tool because of how useful it is. Leonardo Fibonacci, who was born in ancient Italy, discovered a straightforward numerical sequence that is utilized globally and is consistent with a wide range of natural occurrences. The order is as follows: 0 followed by 1, then 1 (0+1), then 2 (1+1), then 3 (1+2), followed by 5, then 8 (3+5), etc. It appears that the Fibonacci sequence is the sum of the two numbers before it. An intriguing ratio may be calculated using these numbers: 0.618 is the result of dividing the first by the second (regardless of which of the numbers in the sequence are taken). And you get 0.382 when you split the numbers by one. The "golden ratio" is this set of fractions, and it appears frequently in nature, a striking example is a spiral like the seeds in a sunflower. The following are the trading-related Fibonacci correction levels: 0.236, 0.382, 0.500, 0.618, and 0.764. Levels of expansion are 0; 0.382; 0.618; 1.000; 1.382; and 1.618. It makes no sense for traders to manually calculate any of these figures, which are all calculated from the sequence. The key is to comprehend how they operate, what they are used for, what data they offer, and how to make effective use of them when trading. Special indicators that automatically draw lines on the chart or symbols in the trading platform are used while trading with Fibonacci levels. Retracement levels can be utilized for a number of purposes, such as support and resistance, to start trades, and to set stop orders. The usage of extension levels by traders for take-profit placement. Based on swings, or candles with at least two upper highs or upper lows on the left and right, Fibonacci levels can be applied to a chart. Additionally, bear in mind that Fibonacci levels for forex are a trending technique and are not applied during periods of consolidation. When the trend is upward, the price tends to retreat from Fibonacci-based resistance levels; the opposite is true for downtrends and support. Fibonacci Levels in Forex: How to Use Them Almost all charting applications contain Fibonacci retracement levels. Fibonacci lines are regarded as the most flexible and understandable option, however others also use fan lines, arcs, and time periods as typical tools. What do you need to know about Fibonacci numbers in order to trade? Values are calculated as 23.6, 38.2, 50.0, 61.8, and 76.4% on a scale of 0 to 100. The primary signal for foreseeing likely future price fluctuations is these ratios (prices often bounce back from levels). The indicator shows levels on the price chart and allows forecasting of future price changes.If you want to manually trade using the price chart or the software, you can select to display correction levels. To do this, drag the cursor from the bottom point of the trend to the top point. There will be five horizontal lines that display 0, 38.2, 50, 61.8, and 100% (an additional line showing 23.6% can be added). Depending on whether Fibonacci is trading above or below the lines, the lines can be utilized as support or resistance levels. The levels activate more frequently as the time span becomes longer. Finding a downward trend, appropriately stretching the Fibonacci lines, waiting for confirmation, and placing an order are the essential duties of a trader. Numerous strategies for using numerical series in trading exist. How Fibonacci Levels Work And How To Use Them In Trading Trading professionals can examine the changes in asset values by using Fibonacci numbers that are displayed as lines on the chart. As a result, resistance/support levels are established, and the degree of a trend movement's already-started corrective is examined. The price typically follows the guidelines of key levels on the Fibonacci lines. Therefore, there is a strong likelihood of a price reversal at the level, for instance, if the price crosses the line. Fibonacci retracement levels are particularly helpful for discovering pullback levels, for establishing the conclusion of a pullback, and for the continuation of price movement along with the trend because pullbacks are a natural part of every trend. The key correction levels are created by the interrelations between a trend and a correction shown by Fibonacci levels, which have recovery probabilities of 38%, 50%, and 62%. It only takes placing a grid over critical spots to see that pivotal price levels frequently cross Fibonacci percentage lines. Fibonacci levels and graphical patterns can be used to coincidentally determine market entrance and exit points. Opening profitable trading positions after a collapse or rebound from a level is beneficial. Trading professionals frequently employ Fibonacci lines to place Stop-Loss and Take-Profit orders. To avoid being caught by an unintentional pullback, it is preferable to position the Stop-Loss order above the levels (for the recovery from which the trader is counting). Take-Profit levels are based on Fibonacci extension.Remember that on a price chart, the support/resistance areas that coincide with the Fibonacci net levels are viewed as further support for the lines' significance. This instrument is the foundation of many trading techniques. Beginners should be aware that there is no definitive interpretation of the Fibonacci technique; it is merely a point of reference. Trading systems frequently incorporate Fibonacci levels with other technical analysis tools because this technique can occasionally fail to corroborate the signals. Importance Of Different Fibonacci Levels Expert traders claim that not every Fibonacci level behaves the same way on a price chart. Before using the instrument for trading, some regularities should be studied. Fibonacci levels and their importance in trading: 23.6 - weak, a clear confirmation is required to use it in trading. 38.2 - an important level, the price of the asset bounces from it for further consolidation. 50 is intermediate in importance between the two previous levels and gives a high probability of trigger. 61.8 - strong, like 38.2. 76.4 - 80.9 is a strong level as well. The likelihood of a profitable trade is quite high if we consider the strength of the levels, trade in line with the trend, weed out erroneous signals using a straightforward extra indicator, and avoid using low time frames. Additionally, it's critical to remember risk management and trading psychology's fundamental principles. Advice for using 38%, 50%, and 62% levels effectively Stretched between the trend's minimum and maximum, a grid is drawn on the graph. On the charts, three to four separate time frames with longer value movements can be displayed in various colors. Numerous Fibonacci levels will be displayed on the graph, allowing for analysis. Usually several of them exactly coincide on various time scales, therefore they are regarded as significant support/resistance levels. These three can be utilized to enter positions and exit open ones because fibonacci numbers have potentially important levels. These price retreat levels by themselves are not what drives price movement; if this line doesn't have the appropriate support, it will simply go to the next. More accurate signals are produced by combining Fibonacci with other tools (such as Moving Averages, trading channels, reversal patterns, etc.). A significant resistance/support level is 62%. When it is attained, the price frequently starts to vary erratically. When the price surges past the 62% level and moves on to the 70–75% retracement level (before returning to the 62% level), you can place an order. When two to three further crossover signals are received, trades can be initiated from deep retracement levels. It is preferable to avoid entering if there are no cross confirmations. It's also a good idea to keep in mind that once the correctional movement reaches the 62% pullback level, it may go on to reach 100% in the chosen time frame and stop the trend. Fibonacci Levels: How to Use Them in Forex Trading Fibonacci levels can be used relatively easily. The most crucial levels in forex trading are 23.6% and 38.2%, 61.8% and 76.4%. They are used to identify price pullbacks; when one appears on the chart, one should wait for a favorable price before joining the impulse (enter the movement at the moment of a pullback). When there is a significant market movement, the asset's price can drop by up to 23.6%, 38.2%, or even 50%. These ranges are regarded as ideal. Price increases of 61.8% or more may signal the beginning of a trend reversal. The Fibonacci levels should be drawn correctly: -Finding the price impulse. -Plotting the grid on the chart. -The expectation of a pullback to 23.6% or 38.2% or 50% to enter the market. -When there is no pullback, the price keeps moving, updating the lows/maximums, it is worth pulling over the grid based on new local extrema. -In this case, it is important not so much to determine the levels as to understand whether the current price movement is a correction concerning the previous one or the beginning of a new trend. When Fibonacci Correction Levels Do Not Work Fibonacci levels are not 100% reliable signals; they are more like rough guidelines that give information about the movement that is likely to occur. Fibonacci levels can also be broken occasionally, just like support/resistance levels can. There are many exceptions to the rules, therefore it is advisable to check the signals with additional tools and to take the maximum precautions when opening any position. The levels need to be carefully worked, refined, and filtered on a regular basis. Sometimes levels might be crossed, and the bounce occurs at 61.8 instead of 50%; other times, the price skips levels and views essential ones as weak and unimportant ones as important. Because of all these features, it is important to be able to combine different tools in a strategy and constantly gain experience trading with the selected tools. Conclusion The suggested strategy broadens the potential uses for trading with Fibonacci levels. You can use it to your advantage so that practically any corrective movement—not just ones that conclude at 38.2% or 61.8%—will be beneficial. You must be able to accept what the market offers you since it doesn't always move that well.
Education
by FOREXN1
15
How to use Fibonacci Retracement ⁉️ ‼️ Forex traders use Fibonacci retracements to pinpoint where to place orders for market entry, taking profits and stop-loss orders. Fibonacci levels are commonly used in forex trading to identify and trade off support and resistance levels. After a significant price movement up or down, the new support and resistance levels are often at or near these trend lines . Usually the price retracts to 50% or untile OTE (0.62, 0.705, 0.79) before another impulse movement occurs.
OANDA:XAUUSDEducation
by Snick3rSD
⁉️ How to use Fibonacci Retracement?‼️ Forex traders use Fibonacci retracements to pinpoint where to place orders for market entry, taking profits and stop-loss orders. Fibonacci levels are commonly used in forex trading to identify and trade off support and resistance levels. After a significant price movement up or down, the new support and resistance levels are often at or near these trend lines . Usually the price retracts to 50% or untile OTE (0.62, 0.705, 0.79) before another impulse movement occurs.
OANDA:XAUUSDEducation
by Snick3rSD
FIBONACCI Retracement ✅✅✅‼️ Forex traders use Fibonacci retracements to pinpoint where to place orders for market entry, taking profits and stop-loss orders. Fibonacci levels are commonly used in forex trading to identify and trade off support and resistance levels. After a significant price movement up or down, the new support and resistance levels are often at or near these trend lines . Usually the price retracts to 50% or untile OTE (0.62, 0.705, 0.79) before another impulse movement occurs.
OANDA:XAUUSDEducation
by Snick3rSD
HOW-TO: FibDev Indicator and the Newest UpdatesWe previously published a HOW-TO on using this indicator, but since then the UI and the automated signals have changed noticeably. We STRONGLY recommend reading the first HOW-TO for this indicator as the core concepts are still the same (outside of the signals). UI Updates: We now hide the supply or demand zones if they aren't applicable to the current price action. If the price is in the neutral zone, there is no current target zone so both supply and demand are hidden. If price has broken out to the upside, we display the target supply zones at this time and vice versa for the downside, we display the demand zones. The way these zones are calculated is still the same, they are built using daily values and do not change through out the day (regardless of if/when they are displayed on the chart). Automated Signals: This is the biggest change, we are no longer generating automated signals based on possible reversal points of oversold and overbought price areas. This strategy can still be used, but there will be no signals created is all. Instead, the signals are now generated when the price leaves the neutral zone and track momentum vs searching for trend reversals as before. When the price breaks through the neutral zone to the upside a Bullish Break Over signal is now printed implying that we see bullish momentum to the upside. The supply zones will display and now we are tracking the upside move with the indicator. The opposite for the downside break, Bearish Break Under signal and demand zones displayed for tracking the momentum to the downside. Conclusion: The indicator is now tracking momentum vs reversals, but using a combination of the Intraday Clouds and Neutral/Supply/Demand zones you can still use this for reversal setups. Thank you! Great Blue Trading Team
AMEX:SPYEducation
by GreatBlueTradingTeam
How To Day Trade Consolidations Profitably With #FibonacciTraders, Several fellow day traders have been asking to show how they can day trade using fibonacci based analysis which I use for swing trading. The fibonacci based analysis is applicable to all chart time frames and on all instruments in all markets. It even works on tick charts. In this educational video I present how we could have made 130 pips easily with day trading GBPUSD using fibonacci based analysis. Support and motivate me by hitting the like button, subscribing to my channel and sharing this analysis with other traders. Comment below and let me know what you think of this analysis and what is yours? I welcome all comments, feedback, ideas and sharing of knowledge. Have a great trading week!
Education
by vikinsa
2
How To Plan Plan A Trade With Fibonacci Ratio ConfluenceHi Traders, In this video we will look at How To Plan Plan A Trade With Fibonacci Ratio Confluence. Fibonacci ratios are most powerful tools with they are used in right manner. We can use them in all sorts of market conditions and asset classes. Fibonacci confluence creates harmonic patterns and gives us very good reward risk ratio. The best thing is the possibility to pre-plan and quantify a trade with high accuracy. Please feel free to comment or ask questions. Hit the like button if you found value in this post. Thanks! :)
Education
by vikinsa
Trading Consolidation Profitably In Forex Markets With FibonacciTrading Consolidation Profitably In Forex Markets With Fibonacci and Harmonic Patterns (A Fibonacci Confluence Tutorial) Hi Traders, In this videos we look at how to trade consolidation periods profitable using fibonacci and harmonic patterns. Apart from using support and resistance, trend lines and channels, we can use the power of fibonacci ratios. Best thing about fibonacci ratios is that we can pre-define targets or make a fairly accurate prediction about market's move. We can can quantify trades in advance. Fibonacci is one the main tools that I use in my confluence trading. Fibonacci is the first tool that pick to start my analysis. Feel free to post your comments or ask questions. Sorry I ran out of time so I will create another part. If you find this useful please Give it a like and share with fellow traders. Like, Share and Comment. Thanks
Education
by vikinsa